Hutchison to buy Orange Austria for US$ 1.7 billion (Hong Kong, Austria)

Hutchison Whampoa has finalized plans to purchase Orange Austria in a bid to enhance its presence in the country. According to reports, the deal valued at US$ 1.7 billion, is an attempt by the operator to increase its market share in the European telecom sector.

As per a statement made by the company, Hutchison Whampoa will divest its assets to Telekom Austria for US$ 514 million. Further, the assets currently owned by Orange Austria include some frequencies, base station sites, intellectual property rights and Orange Austria’s local discount operator Yesss! Telekommunikation GmbH. The transaction is expected to close in mid-2012, and will be financed out of Telekom Austria’s existing cash flow.

According to sources, the deal is beneficial for France Telecom as it enables the operator to concentrate its activities on emerging markets such as Middle East and Africa.